In order to develop magnesium alloy sheets with high formability at room temperature, the anisotropy of deformation behavior of AZ31 magnesium alloy sheets produced by equal channel angular rolling were examined, which were compared with that of the sheets produced by the unidirectional hot rolling. The differences in the deformation behavior of the sheets at the rolling direction (0°), 45° and the transverse direction (90°) were discussed in term of the texture and microstructure. Compared with the as-received specimens, the anisotropy of deformation behavior of AZ31 magnesium alloy sheet produced by equal channel angular rolling was enhanced, which was following with an improved ductility and a large work hardening phenomenon. These could be due to the non-basal texture, which was induced by the continuous shearing deformation during equal channel angular rolling procedure. The fracture mechanism transferred from the cleavage fracture for the unidirectional rolling to the quasi-cleavage fracture for the sheets produced by equal channel angular rolling, which proved that the non-basal texture was in favor of the ductility of magnesium alloy.